# Accipiter Investments Aircraft 2 Limited vs. Union of India & Anr.

> HC judgment dated 2024-04-26. Citation: TCN-2024-HC-00095. The judgment addresses 14 petitions filed by lessors/owners of aircraft leased to Go Air (India)…

- **Court:** HC
- **Order date:** 26 Apr 2024
- **Citation:** TCN-2024-HC-00095
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/accipiter-investments-aircraft-2-limited-vs-union-of-india-anr-62557efe

## Summary

### Background

The judgment addresses 14 petitions filed by lessors/owners of aircraft leased to Go Air (India) Ltd. The lessors sought deregistration of their aircraft by the Directorate General of Civil Aviation (DGCA) due to Go Air's defaults in lease rental payments. Go Air initiated insolvency proceedings under Section 10 of the Insolvency and Bankruptcy Code (IBC), leading to a moratorium imposed by the National Company Law Tribunal (NCLT). The DGCA declined to deregister the aircraft, citing the NCLT's moratorium. The lessors challenged this decision, arguing that deregistration is mandatory under Aircraft Rules and the Cape Town Convention, and that the NCLT lacks jurisdiction over this matter.

## Facts

Go Air (India) Ltd. leased 54 aircraft from 14 lessors for a 10-year period. Due to defaults in lease rental payments, the lessors terminated the lease agreements between May 2nd and May 4th, 2023, and sent termination notices to Go Air. The lessors also submitted deregistration applications to the DGCA. Go Air initiated insolvency proceedings under Section 10 of the IBC, and the NCLT imposed a moratorium on May 10th, 2023. The DGCA declined to deregister the aircraft, citing the NCLT's moratorium. The lessors challenged this decision in the High Court, arguing that deregistration is mandatory under Aircraft Rules and the Cape Town Convention. The Ministry of Corporate Affairs (MCA) issued a notification on October 3rd, 2023, excluding aircraft assets from the IBC

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## Issues and analysis

### Issue 1: Whether the DGCA is obligated to deregister the aircraft under Rule 30(7) of the Aircraft Rules, …

**Ratio:** Rule 30(7) of the Aircraft Rules mandates the DGCA to deregister an aircraft within five

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**Reasoning:** The court reasoned that Rule 30(7) is unambiguous and imposes a statutory duty on the

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**Interpretation:** The court interpreted Rule 30(7) as a mandatory obligation, not a discretionary

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**Application:** The court applied the ratio to the facts by directing the DGCA to process the

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## Parties

- **Judges:** Tara Vitast…
- **Appellants:** ACCIPITER…
- **Respondents:** Go Air (India)…; UNION OF INDIA &…
- **Other parties:** 7th Edition…; Aircraft deregistr…; +11 more

## Timeline

- **2008-03-31 — India accedes to Cape Town Convention and…**: India acceded to the Cape Town Convention…
- **2023-05-02 — Termination Not…**: Petitioners/Lessors sent Termination Notices to Respondent/Go Air on 02.05.2023,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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